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NuStar (NS) Closes the Sale of Texas City Terminals for $106M
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NuStar Energy, L.P. (NS - Free Report) recently concluded the divestment of its Texas City Terminals to Houston's BWC Terminals for $106 million. As part of this transaction, the partnership agreed to sell 80 tanks from its two Texas City terminals.
The company intends to use the sale proceeds to mitigate its debt obligations and self-finance its capital expenditures to execute its strategic actions. This will help it adapt to the prevalent conditions in the oil and gas industry. Even though the firm accepts this as a difficult decision, it expects the employees of its already sold facilities to access a fast-growing entity with a business model that is more operationally synergistic. This, in turn, will create ample opportunities of operational growth and also offer the extended staff a steady path of progress.
The terminal in Texas City has a storage capacity of worth 2.6 million barrels of blend stocks, chemicals, vacuum gas oil and refined petroleum products. Per president/CEO Brad Barron, despite being a valuable resource with notable activities and efficient laborers, the Texas City Terminal’s positioning and its unique configuration failed to synchronize with NuStar Energy’s strategies for other Gulf Coast assets. Therefore, the best way to expedite the development process of these facilities and NuStar Energy is by putting the company along with its assets under another organization’s control that can utilize the terminals’ petrochemical and petroleum capabilities.
Per BWC, which stores bulk liquids like hydrocarbons, chemicals and agricultural products, the Texas City units will be a natural fit to its assets.
Company Profile & Price Performance
Headquartered in San Antonio, TX, NuStar Energy is a midstream energy service provider. It is a master limited partnership (MLP) in the United States. The firm’s units have outperformed the industry in the past six months. The stock has lost 8.5% compared with the 10.8% decline of its industry.
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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NuStar (NS) Closes the Sale of Texas City Terminals for $106M
NuStar Energy, L.P. (NS - Free Report) recently concluded the divestment of its Texas City Terminals to Houston's BWC Terminals for $106 million. As part of this transaction, the partnership agreed to sell 80 tanks from its two Texas City terminals.
The company intends to use the sale proceeds to mitigate its debt obligations and self-finance its capital expenditures to execute its strategic actions. This will help it adapt to the prevalent conditions in the oil and gas industry. Even though the firm accepts this as a difficult decision, it expects the employees of its already sold facilities to access a fast-growing entity with a business model that is more operationally synergistic. This, in turn, will create ample opportunities of operational growth and also offer the extended staff a steady path of progress.
The terminal in Texas City has a storage capacity of worth 2.6 million barrels of blend stocks, chemicals, vacuum gas oil and refined petroleum products. Per president/CEO Brad Barron, despite being a valuable resource with notable activities and efficient laborers, the Texas City Terminal’s positioning and its unique configuration failed to synchronize with NuStar Energy’s strategies for other Gulf Coast assets. Therefore, the best way to expedite the development process of these facilities and NuStar Energy is by putting the company along with its assets under another organization’s control that can utilize the terminals’ petrochemical and petroleum capabilities.
Per BWC, which stores bulk liquids like hydrocarbons, chemicals and agricultural products, the Texas City units will be a natural fit to its assets.
Company Profile & Price Performance
Headquartered in San Antonio, TX, NuStar Energy is a midstream energy service provider. It is a master limited partnership (MLP) in the United States. The firm’s units have outperformed the industry in the past six months. The stock has lost 8.5% compared with the 10.8% decline of its industry.
Zacks Rank & Key Picks
NuStar Energy currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are CNOOC Limited (CEO - Free Report) , Noble Corporation (NE - Free Report) and Antero Midstream Corporation (AM - Free Report) , each presently holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>